This article yesterday reveals unsurprising behavior. Municipal Bids Rigged by Financial Institutions
The questions for discussion is these, what kind of culture and management practices encourage bad behavior? Are these isolated incidents or do such behaviors permeate institutions? How would we know? It seems that individual bankers will be prosecuted for these activities. How will the institutions be prosecuted? In banking there is generally compliance training involving the Patriot Act and Money Laundering. Bankers are taught that there must not be “Willful Blindness” to suspicious activity. Should senior bank managers be held to the “Willful Blindness” test for the way they manage?
I’m sure the argument is being made that these individuals are weeds. They do not reflect the values of the institution. Where do weeds grow?
“Weedy plants generally share similar adaptations that give them advantages and allow them to proliferate in disturbed environments whose soil or natural vegetative cover has been damaged.”
Managers create disturbed environments that allow weeds to proliferate.
The Fourteenth Banker Blog 
[…] stubborn refusal to change its ways in the wake of the financial crisis. Posts include coverage of misdeeds by the financial sector, as well as an inside perspective on issues such as breaking up […]
Pingback by The Fourteenth Banker « The Baseline Scenario — April 5, 2010 @ 1:26 PM |
A simple question:
Where is the DOJ in all this?
Perhaps the right question would be: When will they be granted permission by the White House to go after these guys?
If anyone thinks my question reeks of facile paranoia, please consider this: How come AG Holder is absent from the WH meetings where the decision regarding where to try Khalil Sheik Mohammed is debated?
Isn’t this supposed to be the quasi-exclusive province of the DOJ?
Inquiring minds would very much like to know.
Comment by Francois T — April 7, 2010 @ 1:14 PM |
“Weedy plants generally share similar adaptations that give them advantages and allow them to proliferate in disturbed environments whose soil or natural vegetative cover has been damaged.”
*heal the soil & the weeds become not so much of a nuisance.
*some ‘weeds’ are actually beneficial when used with proper intention.
*pull the weeds and ferment them for a good free fertilizer.
*great blog so far. keep questioning.
Comment by chauncey gardener — April 15, 2010 @ 6:43 PM |